Strategies for Managing Employee Benefits in High-Turnover Industries
Employee benefits administration is challenging for all businesses, but it becomes even more complex in industries with high turnover rates, such as hospitality, fast food, home care, and staffing.
Businesses like yours in these sectors may struggle to balance compliance requirements, employee engagement, and keeping costs down while managing a constantly changing workforce.
Fortunately, there are strategies and tools that can simplify benefits management and help employers thrive in these demanding environments.
Understanding the Challenges of High-Turnover Industries
High turnover creates unique obstacles for benefits administration. Here are some of the most common challenges employers face:
1. Constant Onboarding
When employees frequently join and leave the company, HR teams must repeatedly onboard new hires into benefits programs. This process can become time-consuming and prone to errors if not managed efficiently.
2. Compliance Risks
Industries with high turnover often have fluctuating full-time equivalent (FTE) employee counts, making it harder to determine ACA compliance requirements. Employers risk penalties if they fail to offer compliant coverage to eligible employees.
3. Employee Engagement
High turnover can lead to disengagement among employees who feel disconnected from their workplace. Offering meaningful benefits is one way to improve morale and retention, but it requires thoughtful implementation.
4. Administrative Burden
Tracking hours worked, managing enrollment, and handling claims can overwhelm HR teams, especially when dealing with a transient workforce.
Strategies for Simplifying Benefits Administration
To address these challenges, employers need strategies that streamline processes, reduce costs, and engage employees effectively. Here are five proven approaches:
1. Leverage Technology for Enrollment
Manual enrollment processes can be slow and error-prone—especially in high-turnover industries. Technology solutions like text message or email enrollment make it easy for new hires to sign up for benefits remotely without requiring extensive paperwork or in-person meetings.
Employers can also use online portals where employees can review plan options, enroll in coverage, and access their benefits information anytime.
2. Automate Compliance Tracking
ACA compliance can be tricky when employee hours fluctuate due to seasonal demand or part-time schedules. Automated systems that track hours worked and eligibility criteria help employers stay compliant without constant manual oversight.
3. Offer Affordable Plans
Cost is a major concern in high-turnover industries where profit margins are often slim. Minimum Essential Coverage (MEC) plans provide ACA-compliant coverage at a lower cost than traditional health insurance plans.
With plans starting at just $44/month from Essential Benefit Administrators, employers can offer affordable coverage that meets legal requirements while staying within budget.
4. Prioritize Employee Engagement
Benefits programs should be designed to engage employees and demonstrate that their well-being matters to the company. Features like $0 telemedicine visits and pharmacy discounts make healthcare more accessible and meaningful for workers who may otherwise struggle with affordability.
Additionally, bilingual customer service ensures that all employees—regardless of language barriers—can fully understand and utilize their benefits.
5. Partner with Dedicated Account Managers
Dedicated account managers can be a game-changer for employers navigating complex benefits administration. These professionals provide personalized support to ensure smooth onboarding, timely claims processing, and proactive problem-solving.
Why Employee Benefits Matter in High-Turnover Industries
Investing in employee benefits isn’t just about compliance—it’s about creating a workplace culture that values its people. Here’s why benefits matter:
Improved Retention: Employees who feel cared for are more likely to stay with the company long-term.
Enhanced Productivity: Healthy employees are more engaged and productive at work.
Stronger Recruitment: Offering competitive benefits helps attract top talent in industries where turnover is high.
Engage Your Workforce With Benefits Designed To Retain
Managing employee benefits in high-turnover industries doesn’t have to be overwhelming.
By leveraging technology, automating compliance tracking, offering affordable MEC plans, prioritizing employee engagement, and partnering with dedicated account managers, employers can simplify administration while improving outcomes for their workforce.
If you’re ready to take your benefits strategy to the next level, contact Essential Benefit Administrators today to learn how we can help!